Oil and Gas Management: Interior's Oil and Gas Production Verification Efforts Do Not Provide Reasonable Assurance of Accurate Measurement of Production Volumes

摘要

Oil and natural gas produced from federal leases generated over $6.5 billion in royalties in 2009. To verify that royalties are paid on the correct volumes of oil and gas, the Department of the Interior (Interior) verifies the quantity and quality of oil and gas, both onshore, through the Bureau of Land Management, and offshore, through the Offshore Energy and Minerals Management Service. This report assesses (1) the extent to which Interior's production verification regulations and policies provide reasonable assurance that oil and gas are accurately measured; (2) the extent to which Interior's offshore and onshore production accountability inspection programs consistently set and meet program goals and address key factors affecting measurement accuracy; and (3) Interior's management of its production verification programs. To address these questions, GAO analyzed Interior data on oil and gas inspections and human capital, as well as interviewed officials from Interior, states, oil and gas companies, and other countries.